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Sprinklr
(NYSE:CXM)
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Rating:64Neutral
Price Target:
$7.00
▼(-6.29% Downside)
Action:Reiterated
Date:09/15/26
CXM scores as a moderate opportunity: the strongest pillar is financial performance (cash generation and a low-leverage balance sheet, plus a profitability turnaround). The biggest near-term headwinds are weak technical momentum and an expensive valuation (high P/E with no dividend support). The latest earnings call adds some support via improved execution signals and raised subscription guidance, but services issues and cost pressures remain key risks.
Positive Factors
Recurring enterprise subscription model
A subscription-led model with enterprise, often multi-year contracts provides recurring revenue visibility and creates opportunities to expand deployments through additional modules, seats, agents, and geographies. This supports more durable customer relationships and a scalable base for future growth.
Negative Factors
Professional services execution weakness
The sharp services decline and projected negative margin indicate execution problems that are reducing total growth and profitability. Remediation may take several quarters, while lower billings, partner overruns, and weak delivery economics can continue to consume management attention and limit operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring enterprise subscription model
A subscription-led model with enterprise, often multi-year contracts provides recurring revenue visibility and creates opportunities to expand deployments through additional modules, seats, agents, and geographies. This supports more durable customer relationships and a scalable base for future growth.
Read all positive factors
Sprinklr Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, highlighting areas of strength and potential growth within the company’s diverse operations.
Shows how much revenue each business segment generates, highlighting areas of strength and potential growth within the company’s diverse operations.
Data provided by:
The Fly
The FlySprinklr (CXM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.56B
Dividend YieldN/A
Average Volume (3M)2.76M
Price to Earnings (P/E)70.1
Beta (1Y)0.79
Revenue Growth6.35%
EPS Growth-79.74%
CountryUS
Employees3,258
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.10
Shares Outstanding131,087,000
10 Day Avg. Volume2,461,018
30 Day Avg. Volume2,758,996
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)2.70
Price to Sales (P/S)1.87
P/FCF Ratio10.14
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit1.92
Enterprise Value/Ebitda16.66
Forecast
1Y Price Target
$7.42Price Target Upside-0.71% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.48
Revenue Forecast (FY)$867.45M
Sprinklr Business Overview & Revenue Model
Company Description
Sprinklr, Inc. is a global enterprise software company specializing in cloud-based solutions. Its primary offering is the Unified Customer Experience Management (CXM) platform, a sophisticated system engineered to process and interpret vast amount...
How the Company Makes Money
Sprinklr primarily makes money by selling subscriptions to its cloud-based CXM software platform to enterprise customers, typically under term-based contracts (often multi-year). Revenue is largely recurring and is recognized over the contract ter...
Sprinklr Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
The call was predominantly optimistic, with management highlighting three consecutive quarters of improved execution, strong enterprise deal activity, improving renewal and expansion metrics, record total RPO growth, AI-native SKU ARR growth of 40%, a raised subscription revenue outlook, strong cash generation, and a debt-free balance sheet. The principal challenges were concentrated in professional services, including negative gross margin, softer billings, lower revenue guidance, and execution issues, alongside higher hosting and data costs, ongoing churn from the prior year, and Middle East disruptions. Management characterized the services issues as tactical and stated that the broader subscription business and transformation remain on track.Positive Updates
Q2 Revenue, Subscription Growth, and Profitability
Second-quarter total revenue was $213.7 million, up 1% year-over-year, while subscription revenue was $194.8 million, up 3% year-over-year. Non-GAAP operating income was $31.3 million, representing a 15% non-GAAP operating margin, and non-GAAP net income was $0.11 per diluted share.
Negative Updates
Professional Services Revenue Shortfall
Professional services revenue was $18.9 million, lower than anticipated because of softness in managed services. The company said total Q2 revenue growth of 1% was affected by services offsetting the increase in subscription revenue.
Read all updates
Q2-2027 Updates
Positive
Negative
Q2 Revenue, Subscription Growth, and Profitability
Second-quarter total revenue was $213.7 million, up 1% year-over-year, while subscription revenue was $194.8 million, up 3% year-over-year. Non-GAAP operating income was $31.3 million, representing a 15% non-GAAP operating margin, and non-GAAP net income was $0.11 per diluted share.
Read all positive updates
Company Guidance
For Q3, Sprinklr expects total revenue to be in the range of $215 million to $216 million, subscription revenue to be in the range of $196 million to $197 million, representing 3% growth year-over-year at the midpoint, professional services revenue of $19 million, down 34% year-over-year, professional services gross margin to be negative 15%, non-GAAP operating income to be in the range of $33.5 million to $34.5 million, non-GAAP net income per diluted share of approximately $0.11, assuming 239 million diluted weighted average shares outstanding, $3 million in other income, a tax provision of approximately $10 million, and roughly $10 million of free cash flow; for the full year FY '27, it expects subscription revenue to be in the range of $782.5 million to $784.5 million, representing 4% growth year-over-year at the midpoint, total revenue to still be in the range of $866.5 million to $868.5 million, representing 1% growth year-over-year at the midpoint, professional services revenue of $84 million, non-GAAP operating income to be in the range of $139 million to $141 million, a 16% non-GAAP operating margin, non-GAAP net income per diluted share of approximately $0.47, assuming 240 million diluted weighted average shares outstanding, approximately $41 million in total tax provision, an estimated $15 million in other income, approximately a 26% effective tax rate, and a full year free cash flow margin of approximately 16%, representing about $135 million of free cash flow.Sprinklr Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 872.88M | 857.20M | 796.39M | 732.36M | 618.19M | 492.39M |
| Gross Profit | 572.53M | 577.78M | 574.62M | 552.96M | 454.46M | 344.84M |
| EBITDA | 66.02M | 78.16M | 45.45M | 53.71M | -39.17M | -79.41M |
| Net Income | 23.16M | 22.91M | 121.61M | 51.40M | -55.74M | -111.47M |
Balance Sheet | ||||||
| Total Assets | 1.05B | 1.21B | 1.18B | 1.22B | 1.02B | 920.05M |
| Cash, Cash Equivalents and Short-Term Investments | 452.90M | 502.51M | 483.46M | 662.55M | 578.63M | 532.41M |
| Total Debt | 41.35M | 46.73M | 48.70M | 33.29M | 16.77M | 0.00 |
| Total Liabilities | 532.30M | 612.42M | 572.14M | 543.41M | 475.66M | 404.20M |
| Stockholders Equity | 519.48M | 592.64M | 612.06M | 679.70M | 549.33M | 515.85M |
Cash Flow | ||||||
| Free Cash Flow | 124.70M | 157.81M | 71.79M | 51.14M | 10.21M | -45.33M |
| Operating Cash Flow | 129.17M | 159.19M | 77.59M | 71.47M | 26.66M | -32.92M |
| Investing Cash Flow | 107.18M | -12.47M | 154.13M | -110.57M | -193.49M | -15.65M |
| Financing Cash Flow | -129.13M | -131.85M | -248.16M | 24.09M | 34.97M | 303.13M |
Sprinklr Technical Analysis
Positive
7.47
Price Trends
6.09
Positive
5.93
Positive
5.85
Positive
Market Momentum
0.24
Negative
72.87
Negative
95.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXM, the sentiment is Positive. The current price of 7.47 is above the 20-day moving average (MA) of 5.71, above the 50-day MA of 6.09, and above the 200-day MA of 5.85, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 72.87 is Negative, neither overbought nor oversold. The STOCH value of 95.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXM.
Sprinklr Risk Analysis
Sprinklr disclosed 45 risk factors in its most recent earnings report. Sprinklr reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sprinklr Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $773.67M | -25.52 | -14.05% | ― | 11.85% | 47.54% | |
64 Neutral | $1.56B | 70.11 | 4.29% | ― | 6.35% | -79.74% | |
62 Neutral | $317.76M | 66.67 | 3.34% | ― | 3.66% | ― | |
62 Neutral | $141.50M | 17.35 | 10.20% | ― | 3.06% | -72.26% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $595.33M | -29.20 | -24.96% | ― | 16.73% | 35.67% | |
44 Neutral | $11.65M | -0.27 | -668.04% | ― | -21.48% | 17.84% |
* Technology Sector Average
CXM
Sprinklr
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Sprinklr Corporate Events
Business Operations and StrategyExecutive/Board Changes
Sprinklr Adds Microsoft AI Leader to Board of Directors
Positive
Aug 13, 2026
On August 10, 2026, Sprinklr’s board expanded from seven to eight members and appointed Microsoft executive Jordi Ribas, Ph.D., as a Class II director, effective August 17, 2026, with his term running through the 2029 annual meeting.
Ribas, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.